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Bitcoin’s Asian contagion

As the total value of all bitcoins in circulation hit a record high moving above $14 billion on Thursday, the digital currency jumped 5 percent in trading to hit its highest levels in three years after more than doubling in price this year.

What’s behind this run up in price is the steady depreciation of the Chinese yuan. Chinese buyers of bitcoin have been driving the price higher as a hedge against their weakening currency.

India to a lesser extent has also fueled the bitcoin rally after the government cracked down on untaxed revenue by taking two of the largest denominated bills out of circulation.

Bitcoin is also used by the Chinese as a way to move cash out of the country, without the stiff controls implemented by the government.

The digital currency is off its peak price of $1,163, which it hit in late 2013.